Emerging Power Node

Panama Switch

Panama Canal, Panama

Legendary

The Panama Canal cuts 77 kilometres across the Isthmus of Panama, connecting the Atlantic and Pacific Oceans and saving vessels the 20,000-kilometre Cape Horn circumnavigation. The 2016 expansion — the third set of locks — doubled the canal's capacity, permitting New Panamax vessels of up to 14,000 TEU to transit, compared to the original 5,000 TEU Panamax limit. Approximately 6% of global maritime trade transits the canal annually; for US East Coast trade with Asia, the proportion exceeds 40%. The canal generates USD 4.5 billion in annual revenue for the Panamanian state — the primary source of government income. Unlike Suez, which faces Red Sea geopolitical risk, Panama's vulnerability is climatic: a prolonged drought in 2023–2024 reduced Gatun Lake water levels, forcing draft restrictions that cut daily transits from 36 to 22 vessels and created a queue of 200 ships. The canal runs on rainwater.

panama · canal · chokepoint · americas